Devon and Cornwall Police said they located and recovered the bodies during a “large-scale search” of Roadford Lake, near Okehampton.
It came after a boat capsized in the lake at around 1.30pm on Wednesday.
#LatestNews - Police have today recovered the bodies of two people during a large-scale search of Roadford Lake, near #Okehampton, after a boat capsized on Wednesday. https://t.co/G2rOQetY7L pic.twitter.com/yrPS5irI2d
— Devon & Cornwall Police (@DC_Police) June 9, 2022
The families of the two people who had been unaccounted have been informed of the development and are being supported by specially-trained officers, the force said.
Formal identification is yet to take place, it added.
Devon and Cornwall Police said earlier that two people were taken to hospital following the incident on Wednesday.
One has since been discharged while the other remains in Derriford Hospital, Plymouth, in a critical condition.
A further two were pulled from the water and checked by paramedics before being discharged at the scene.
All of those in the boat are believed to be local to Devon, investigators say.
The Marine Accident Investigation Branch’s page on the Government’s gov.uk website earlier said two disabled people were unaccounted for.
Chief Superintendent Dan Evans said: “This is an extremely distressing incident and our thoughts are with all of those involved and their loved ones, who we are working closely with to offer help and support wherever we can.
“Every effort has been made to locate the two people who remained unaccounted for as fast as possible.
“Tragically, we can confirm that the bodies of two people were located and recovered this afternoon.”
The force said the boat has been secured.